Base Date: December 31, 1997
No. of Components: 400
Minimum Market Cap: USD $250 million
Minimum Daily Avg. Liquidity: USD $2 million
Sector Limit: 20% (80 companies)
Geographic Exposure: United States
Rebalance Frequency: Semi-annual
Underlying Universe: Companies domiciled in the North America, excluding Canada, listed in U.S. exchanges
All index constituents are selected on the basis of their fundamental strength as measured by MarketGrader’s overall grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.
All 400 index components are equally weighted in the index at each semi-annual rebalance. This prevents a small minority of very large companies from steering the index, while giving smaller issues equal opportunity to contribute to the Barron’s 400’s overall performance. By definition, then, each stock represents, after each selection, one quarter of once percent of the overall index. No weight modifications or adjustments are made to the portfolio between rebalance periods.
All index constituents must have a minimum float-adjusted market cap of USD $250 million and a minimum 3-month daily traded value of USD $2 million. At least 25% of all index components must have a market cap of at least USD $3 billion.
No more than 20% of the index (80 companies) may belong to the same economic sector. REITs are altogether ineligible for selection.
The index is rebalanced twice a year, on the third Friday of March and September.
The Barron’s 400 Index, or B400, was jointly developed by Barron’s and MarketGrader and introduced on the cover of the September 3, 2007 issue of Barron’s magazine. In Barron’s words, the index “collects the most fundamentally sound and attractively priced stocks from all corners of the market, using a proven and disciplined stock-selection process.” B400 does not strive to be a benchmark representing the overall U.S. equity market but rather a tool designed to give investors access to America’s most promising stocks.
156 Almeria Ave, Suite 201
Coral Gables, Florida 33134 USA
Phone (888) 529-1767
The Barron's 400 ETF (NYSE Arca: BFOR)